IRA Calculator
Project the growth of your Traditional or Roth IRA and plan for your retirement.
Max contribution for 2024 is $6,500 ($7,500 if 50+).
Traditional: tax-deductible contributions, taxed in retirement. Roth: after-tax contributions, tax-free in retirement.
IRA Balance by Age
1. **Traditional IRA:** Contributions may be tax-deductible, reducing your taxable income now. Withdrawals in retirement are taxed. Best if you expect to be in a lower tax bracket in retirement.
2. **Roth IRA:** Contributions are made with after-tax dollars, so they are not tax-deductible. Qualified withdrawals in retirement are tax-free. Best if you expect to be in a higher tax bracket in retirement.
3. **Contribution Limits:** Both Traditional and Roth IRAs share the same annual contribution limits, which are adjusted periodically for inflation.
4. **Income Limits:** Roth IRAs have income limits for direct contributions. If your income is too high, you might consider a "backdoor Roth" conversion.
5. **Early Withdrawals:** Generally, withdrawals before age 59½ are subject to a 10% penalty and income tax (for Traditional IRA). Roth IRAs have more flexibility for early withdrawals of contributions.
6. **Diversify:** Choose a diversified portfolio within your IRA that aligns with your risk tolerance and time horizon.